Global Logistics Park Asks for Tax Break
Monday, June 10, 2013 @ 4:00 AM
Prince George, B.C. – Prince George City Council is being asked to contemplate a special tax break for the Global Logistics Park along Boundary Road.
The Global Logistics Park proponents say access to the properties for development will be available once the construction of Boundary Road is complete. That completion is set for this fall. They request that City Hall provide a tax exemption for the properties as an incentive for light industry , a tax break similar to that offered in Abbotsford at the airport there.
City Staff say the Abbotsford break only applies to City of Abbotsford owned land at that particular airport. The staff report also notes there have already been many contributions made by the City of Prince George and the Province to make the Global Logistics Park viable. Staff does not support the request saying it is “premature” for the following reasons:
(1) The economic conditions currently exist for success.
(2) The industrial lots have not yet been developed so the market conditions for the sale of the lots have not been truly tested.
Also on the agenda for this evening’s regular meeting of Council, is a request from the World Baseball Challenge for a contribution. The WBC is asking for $10,000 to help offset the cost of bleachers for the August event.
Comments
As a city we put $45 million into the infrastructure for this ‘logistics park’. Money that should have gone into our roads.
Now they also want a tax break so they don’t have to pay the taxes to cover their infrastructure improvements? That is a slap in the face to all the other property owners in the city. If they can’t afford to pay for their taxes, then maybe the city will just have to take over ownership of the properties.
IMO the whole development was a gross mismanagement of city revenue to begin with. We still have the Willowcale road in the BCR Site the city paid millions for to put in pavement, curbs, street lighting and city water and sewer services for 4.5km of road servicing ‘new industrial developments’ that has yet to see a single new development since the infrastructure was put in. The property tax payers of PG subsidized that fiasco as well.
Pipe dreams for industrial site developers financed by PG home owners is what it amounts to.
So the World Baseball Challenge is admitting that they have offered to host an event which is taking place in 2 months for which they have not secured enough funding yet.
Why were the prices to attend not fixed high enough to cover this expense? Perhaps they need to seek out more sponsors or increase net sales on site.
A 2006 there was a 1.6 km reconstruction and extension of the Willow Cale complete with widening, new drainage structures and paving plus upgrading underground watermain and fire hydrants. BCR Properties Ltd paid for that, not the City.
Does anyone know why the City pay for any work in the BCR site? The property owners/developers were to pay for that and have done some of that work a long time ago as I understood it.
The question I have to ask myself is how are we going to find all the logical people needed to work in a logistics park?
We’ll draw loggers away from logging, gus. It’ll be one of those big win-win situations governments just love. They’ll be retrained to log on instead of log, and our forests will be preserved.
This City cannot afford any tax exemptions.
The argument for this exemption is weak at best, and if anything indicates that they have little or no sales for this property at this time, and are using the exemption as a loss leader.
I would suggest that 75% or more of the industry that locates at this park, will relocate from other industrial areas in the greater Prince George area. If this is so, then those business’s that relocate and who presently pay taxes, would get an exemption?? Hmmmmmmm.
Home Owners ask for Special Tax Break ? why not.
I really don’t get it. If the project couldn’t survive without a tax-break then do we really need it?
So we haven’t even cut the ribbon on the $48 million Boundary Rd project and business owner are already asking for a handout? Sheesh…talk about welfare capitalism.
Isn’t this how private industry works, begging for taxbreaks and handouts. This is small compared to the 58 billion in very expensive contracts meted out to Independent Power Producers.
I always chuckle about those bitching about government workers when it is private industry that is sucking us dry.
How about a tax break for me as an incentive for me to keep living here? I’m special too.
I’d consider a tax break if the company fit into one of two criteria:
1) They were a business NEW to PG OR
2) They were an existing business in PG and they could demonstrate that by moving to this new location, there would be a tangible improvement to the air quality in PG
So new businesses should get a tax break while they compete with existing businesses?
Property taxes on industrial land are horrendous.
A new plumber shouldn’t have to pay them when they compete with existing plumbers? Doesn’t make a lot of sense.
Well it sounds like a tax break as opposed to a tax exemption, but I see your point.
So let’s revise #1 to say a business NEW to PG for which there is no direct competitor already located in PG.
Oh and let’s add a third, fourth and fifth:
3) You get a break if you are “clean” industry
4) You get a break if you employ more than 100 people
5) You get a triple break if you are “clean” industry AND employ more than 100 people.
Instead of treating everyone exactly the same way, why not get creative with tax policy and use it to attract certain types of business? At the end of the day, should the city be worried about improving city as a whole or should they be worried about hurting joe plumbers feelings?
6. You get a break if the business is up and running within two years, otherwise. Goodbye.
You get a break under one condition, that your business is directly related to, and/or is a benefit to aircraft / air cargo / airport operations.
This is ultimately why this industrial park was created in the first place.
And really, this is Abbottsford is trying to do around their airport. They’re not trying to entice say a car dealership. they want airport/aircraft related business to locate there instead of Vancouver International.
No more tax breaks and/or exemptions unless they meet a whole bunch of conditions, most have been mentioned above. Otherwise, forget it.
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